EU VAT: How EU is Modernizing its VAT System

With the rollout of the ViDA (VAT in the Digital Age) reforms, VAT compliance is no longer just a back-office function – it’s a strategic imperative.

💡 Why it matters:
– Diverging VAT rules across EU Member States
– Multiple VAT rates for the same goods/services
– Higher fraud risks (cross-border VAT fraud costs the EU ~€50bn annually)
– Rise of AI-driven audits and stricter reporting obligations

🚨 What’s changing with ViDA?
– Mandatory e-invoicing across the EU by 2028
– Real-time digital reporting of VAT transactions
– Single VAT registration to simplify cross-border trade
– Updated rules for the platform economy and digital services

📊 How to prepare:
1. Assess your current VAT obligations across the EU
2. Explore OSS/IOSS registrations to simplify filings
3. Invest in VAT automation and compliance technology
4. Train teams on evolving EU VAT rules
5. Collaborate with local experts to avoid penalties and mitigate audit risks

At Greenfields, we support international businesses in adapting to these changes – from compliant entity setup in Germany to seamless VAT operations across borders. Let´s connect!